Compliance activities begin with drafting and maintaining an internal procedural system drawn up to adapt to external regulations – national and international – and internal rules.
Procedural compliance is a particularly delicate issue. The formalization of control rules and protocols is often perceived as necessary; if not properly managed, it could slow down company processes.
Therefore, the compliance function can perform different tasks according to the various regulations and needs of the sector. In this article, we will review the matter and the benefits of compliance in logistics.
What is the Problem?
Managing supply chain operations efficiently and complying with the ever-changing evolution of supply chain processes requires visibility and transparency. Teams not only need access to data and information; they must also be able to apply it to a rapidly evolving environment.
The lack of coordination between Customs and administration, and between Customs and business, has become a more prominent issue in recent years. This is mainly due to requirements for faster information delivery, in advance of shipping, for security and other purposes, and the expanding requirements of data standardization in international supply chains. The ability to handle data efficiently and swiftly has become a key element in international competitiveness, especially in international supply chains.
The aim is to provide businesses with an internationally recognized quality mark, which will indicate that their role in the international supply chain is secure and that their customs controls and procedures are efficient and compliant. An operator with a security and safety status implies that, apart from being reliable in the traditional financial and customs terms, the company is also compliant with security and safety standards. It can be considered a ‘secure’ trader and, thus, a reliable trading partner.
Benefits of Logistics Compliance
Successful internal processes
Applying compliance can actively contribute to creating value by minimizing risks. It can do so by implementing rules, safeguards, and operational control activities that guarantee compliance by facilitating or, at least, not hindering the performance of production processes.
These are the main benefits:
- The whole organization is improved and more efficient, internal processes are more fluid, and the entire operation can perform better within structured and regulated processes.
- The existence and availability of internal models and codes strengthen the company’s image and reputation. It talks about its reliability and shows its solidity in structural terms.
- Compliance with the legislation allows companies to avoid penalties for failure to comply.
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The complexity of the modern supply chain regarding transportation and the geographic distances involved makes it challenging to maintain logistics compliance.
There is much to be done to track logistics compliance and manage the logistics industry’s inherent cargo risk. Freight transportation and logistics face many external risks due to increased market demand, changing consumer needs, fluctuating economic conditions, and other significant factors. These risks and stressors require transportation businesses and shipping organizations to develop and maintain comprehensive and innovative risk management strategies. Fortunately, a well-implemented TMS platform can give you visibility and help you make the best decisions.
The ILS Company has large expertise and has added value to each customer’s supply chain by analyzing specific requirements, developing and implementing effective international supply chain solutions under high-quality standards, and following all the regulations for a successful business, giving you clear visibility of your cargo.